shopping mall called the reed dough center. we know reed dough center. my colleague melissa francis continues here. melissa: multiple shootings by multiple suspects and gunman shot dead. weapons in the wrong hands. isis seizes control of deadly ammunition. this year's elections will be the most expensive on record. does spending more money win more votes? we have our suspicions. even when they say it's not it is always about money. melissa: we're following the story after multiple shooting around canadian parliament.

one gunman is killed. more are thought to be involved though. shots are reported in three different locations all around the city. let's turn to our panel now for their reaction. to just, james freeman of "wall street journal." todd schoenberger. rob basso, advantage payroll services. thanks to all three of you for joining us. we're watching events unfold. the market sinking further. this is show called money. we're focused on markets. we're down 120, double where we were when we kicked off. does this add to the nervousness in the market? >> it does add to the nervousness. this may be beginning filling out a picture we've been tracking again we don't know who these people were or how many people there were but we noticed within the last week in canada, soldiers being run down. they have now decided that was an act of islamic terrorism. we saw a recent plot in the u.k., targets aimed at military and police officers. melissa: yeah.

>> radicals coming back from syria. so this threat we've been warning about, about people being radicalized in the middle east, in syria and then coming back here, this may be manifest station of that. melissa: we're trying to get catherine herridge. she is the chief intelligence correspondent with fox news channel but talking about a counterterrorism source telling fox news there was spike in isis related chatter targeting canada in five days leading up to this incident. based on canada, joining coalition and day of reckoning coming. no one claimed responsibility for what is going on so we don't know that but still exploring the option of considering it. >> our hearts go out to the family of the fallen soldier plus the canadian people. melissa: of course. >> there is nothing to stop this type of thing from happening here in the states. but we shouldn't rush to judgment to decide if it's a terrorist act. it certainly seems like organized attack and i can understand why it affects the u.s. markets and markets abroad. melissa: yeah. >> what would it be then?

>> of course it's a terrorist attack. we should cut right to that. melissa: no. i mean, no, we shouldn't cut right to that. >> melissa you call it whatever you want. it is coordinated attack with multiple locations right on our doorstep. i mean this is signal. this is sign to send to us, that can happen here in new york. that is why traders are scared to death right now. you're going to see this market further collapse as details unravel this afternoon. melissa: do you agree with that. >> there is a lot we don't know but remember the canadian police and intelligence services disrupted in 2006 a plot that included among its targets the parliament in ottawa. so i think it is reasonable to conclude this may be part of a large effort. melissa: reasonable to think that. we always want to wait for the evidence before we decide something like that. >> of course. melissa: canadian prime minister was in a caucus meeting in parcel meant. he has now been removed from the location. but certainly ottawa in lockdown. a lot of panic. >> they're doing what's prudent. doing exactly what we would do

here in the states or any other nation potentially on attack. melissa: okay. i want to bring in former new york city police detective thomas russ skin. he joins us on the phone. he is expert in urban crisis management. give me your take on this so far. >> first i don't think we can assume this is a terrorist attack until law enforcement and officials figure out who this guy was and what ties he has. we're not sure from anything we've heard there are definitely multiple sites of attack ultimately the parliament building where the gunbattle happened and the soldier was killed at the war memorial. anything else could be bad rumor and police responding based on ricocheting what they hear as shots. so i think it's a little from mature until we know who this individual is. until he is postively identified, okay. >> to determine what happened. melissa: i mean that said, what is your take and what do you think happened? >> well, i mean we definitely know that someone attack ad

soldier. only because he is in uniform, at the war memorial, killing that soldier. and then decided to walk the 200 yards into the parliament. he made his way into some portion of the parliament building where the gunbattle happened and from what i understand he was killed. melissa: colonel ralph peters, comment last hour, reacting to breaking news saying canadians are less prepared for this sort of incident. that they don't expect it as much as say, new york city expects something like this to come to your doorstep. is that your experience? would you agree with that. >> i would agree with the colonel. melissa: really? >> relative to. that i think each country that hasn't had this happen on their shores isn't up to speed as of yet. and canada, listen, is a very peaceful nation as a whole. as london was before it was attacked in august of a couple of years ago when the problemmings-- bombings on the

transportation system happened in august. it take as while for a country to understand they are potential target. and i think that canada is coming up to speed by raising their rating, security rating from low to medium just the other day. melissa: yeah. given that, does it make us fear more this would be a good entry point into the u.s. for terrorists, for militants trying to come here if canada is ininherrently less prepared? >> we have known on our borders and our border patrol and our fbi and joint terrorist task force, police departments in this country that this country is definitely a target. new york city knows they're in the cross-hairs of a potential terrorist target or a lone bomber as we saw with faisal in may two or three years ago. we are prepared for it. we are watching people coming into our country. we don't know as of yet and would be stupid for us to now

guess that this guy wasn't a canadian citizen. it could have been a homegrown terrorist situation or a homegrown nut who walked in and shot people up. melissa: we know now that the fbi is assisting with what is going on. i want to tell our viewers we're waiting for a press conference from the royal canadian mounted police that is going to be coming up shortly. so we're waiting on that, but in the meantime, looking at this further, does it change in your mind, tom what should be done in new york now? are we already on the highest alert or does this put folks in cities all over the country at a higher alert? >> at 10:03 this morning i got an alert from the new york city police department alerting me of the attack in ottaw and i know commissioner miller and commissioner bratton and powers to be in new york city heightened our herbertness of what happened there and took proper cautions probably at canadian mission, our mission

and other places around the city of sensitivity. and probably the british mission as well. >> let me turn back to the panel for a second. market is down less than 100. it isn't type of panic that we think. are we getting more used to this. >> possible. they may be following your advice. melissa: let's not panic. >> get more information before we connect the dots. again i don't think this should be a surprise given they have been a stalwart ally, canadians and allied with a lot of our friends in the middle east. it is reasonable to think they might be a target as well. i think, yes we're in an age, where this is not that shocking, sadly and you think of the horrible images we've been seeing from the middle east. they're probably is a certain desensitizing. melissa: not an age that will go away anytime soon. we're in this battle with isis for a while. there isn't end in sight. >> generational.

melissa: like any retaliation is going to continue as long as we're physically in this battle right now. >> our enemy -- melissa: go ahead. >> our enemies have the long view. they're looking at this, as you just said generationally. they're not looking at this as an event that is going to take place. this is their way of life to potentially attack the way we live i think it will continue to affect markets. i don't think it would move markets as much as we think it would, simply to the fact we're used to this. this is not first time it happened to us. clearly you disagree. >> you're saying that. you're talking about the threat. we had this threat. isis has been threatening the homeland for how many months now? we've been seeing it over and over again. that is headline news story. until something happens, that is action that people take place. this is signal. sign of us see a lot of selling between 3:30 and 4:00. once the mutual fund orders. melissa: let's pause for a

moment. first medical supplies and food. now it is weapons. how isis terrorists got hands on deadly ammunition dropped by the u.s. more "money," some answers coming up. (vo) watching. waiting. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile.

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melissa: we want to let you know we're awaiting a press conference from the royal canadian mounted police. they're supposed to come out and talk about shootings in ottawa. we were expecting them at 2:00. we're waiting to see what is happening. as soon as they come out to give us more details we'll go to that. we want to go back to the breaking news unfolding itself in ottawa. police are searching for numerous suspects following multiple shooting around parliament this morning. one solder is wounded. one of the suspected gunmen is dead. soldier is dead as well. let's go to peter barnes with washington who has the latest. peter. >> hey, melissa. national security officials across the u.s. government have been briefed on the ottawa shooting and are monitoring the situation and talking to their counterparts in canada according to the obama administration. the white house says that the president himself has been briefed on the shootings there and has spoken to canadian prime minister stephen harper but the white house is not calling this incident terrorism at this point.

>> i'm not in a position to, to render a judgment on that at this point. obviously canadian authorities are still responding to this situation and i'm confident they will conduct an investigation in which they will consider a range of questions not unlike the question you just asked. >> now an official at the department of homeland security is not talking specifically about raising the threat level here in the u.s. because of this with you says, quote, our security posture which always includes a number of measures which are seen and unseen, will continue to adapt appropriately to protect the american people. melissa? melissa: peter, thank you so much for that report. not raising a threat level yet. i mean, i guess we're just waiting for it to happen. is that relevant to anyone? >> could be relevant. melissa: do you pay attention to what the actual threat level is? >> it could be relevant. whether a question of not acting quickly or whether they actually

learned some things from the canadians to suggest maybe this isn't terrorism will, you know, it is hard, we're speculating at this point. we'll know in a day or two if they were slow to respond or what actually happened here but i think it is important to note again, that they have had what the canadians believe is terrorist incident of similar nature within the last week there. melissa: right. >> with the hit-and-run attack on soldiers. melissa: they do believe that was. >> they do. as for this one i don't think they said. i guess maybe they're about to tell us momentarily. melissa: yeah. >> a lot of reasons to think maybe this could be that problem we've been warning about with radicals coming back from -- melissa: we'll be getting more information when we go live to the royal canadian mounted police and their live press conference. is that this? let's listen in. >> please be mindful due to the ongoing situation and investigation there will be many answers that we will not be able to answer answer at this time. i first would like to acknowledge the presence of

ottawa police chief charles bordelo. to his right, commanding officer of rcmp national division, the assistant commissioner. geo michelle. to his right, major general christopher coates, deputy commander of joint operations command. finally to my far right, mayor of ottawa, jim watson. in terms of proceeding with the press conference we'll have a first a statement by ottawa police chief charles borde lax. >> good afternoon. at 9:52 a.m. this morning the ottawa police service received multiple 911 calls regarding a shooting at the national war memorial. -@the victim of the shoot something member canadian armed forces. his injuries were fatal. our thoughts and prayers are with the member, his loved ones and other members of the forces.

his identity and age won't be confirmed at this time as we're in the procees of contacting his family. what followed was another incident on parliament hill. what i can tell you is that a male suspect is now deceased. together with the rcmp, all available resources have been deployed to this ongoing police operation. our priority is the safety and security of our community. additional resources are on standby should they be required and all measures are taken to assure the safety and security of our residents. we are very aware of the large presence of military personnel in our community and i want them to know that we are committed to their safety. as i said, this is an ongoing operation. we're asking members of public to stay away from the downtown core. people in the downtown core are asked to follow the instructions of their building's management. the ottawa police service is looking for witnesses to come

forward with information regarding the incident that took place this morning. witnesses can contact a major crimes section at 613-236-122, extension 5493. the rcp has set up email address for public tips. we continue to communicate and work actively with our partners including those in neighborhood jurisdictions. [speaking french]

[speaking french]

[speaking french] >> next of commanding officer of our rcp division. >> good afternoon, i'm the assistant commissioner, commanding officer of the rcmp national division here in ottawa. first, our thoughts and prayers go out to the loved ones of all those who are affected by today's events. as you can appreciate this is a dynamic and unfolding situation. i understand hat people and have many questions and we are committed to providing answers as soon as we are able. what i can tell you. i can tell you all available and necessary resources were activated and deployed immediately when we became aware of the incident. we'll continue to be here.

ottawa police service, will complete investigation for all incidents. rcp will continue own parliament hill. these are situations we as police officers train for. we train our own members and we train with other police agencies. we contact training with what we see in at waa today. it is important for all report anything they think is suspicious to the local police and so it can be followed up on. we're monitoring the situation and continuing and sharing information with law enforcement and security community in order to insure we have what is necessary to do our jobs and keeping canadians safe.

[speaking french] [speaking french]

[speaking french]

>> thank you, major general christopher coats. >> i'm major general christopher coates, deputy commander at navy joint operations command. canadian armed member was shot by unan unknown person at national war memorial today. the i've dentty of the member can not be released for privacy reasons. our thoughts are with the member and member's family at this time. we're working closely with our law enforcement partners in response to this ongoing situation. as it precautionary measure, until such time as the situation is considered under control, military and civilian personnel working in the ncr have been told to remain in their buildings until further notice.

basis and establishments are currently taking precautions to ensure the safety. >> thank you. >> thank you. today is a sad and tragic day for our city and country. i extend my heartfelt condolences for the family who lost his individual that lost his wife this morning in the downtown ottawa area. i want to convey to those that are injured today, there is no pain greater than losing a loved

one. there is sad and anger in my heart. i will not let that anger rule me. we are doing so again today. they are not yet fully known. it causes you to not yet fully be misunderstood. those actions will come from a dedicated police force. remember how that one person's life has been taken from us. family, friends, the future that was supposed to be his.

please, paramedics for their compassion and dedication. thank you. >> we are going to mama tour the question and answer. there was first the memorial which resulted in the death. then there was the suspect gunned down.

they also said they do not know the origin of the tragedy yet. >> let's take a look at this situation. i do think that the canadians are doing a great job of keeping things strong. unfortunately, it is a direct contradiction that you see. one thing that i did not hear that i would have liked to have heard is the resolve trying to get to the bottom of it. really investigating what actually took place. i did not hear that. >> telling the family that their hearts were with them. we are chasing them down. we will get them. >> i think the culture there is

towards more understatement. absolutely no information about what happened and why. we are left to speculate. i am looking at a face in the uk last week. they are targeting police officers and soldiers. not learning anything so far from canadian authorities. >> except for they did not mention the third incident. they are downplaying that this went on from where it was. >> monitoring the airspace as well. were guard list, it is to accidents that have happened. they may have some type of clues or something. they are doing their due july --

diligence. we also had a report that there was a spike in isis related chatter about targeting canada and the five days leading up to this as a result. we have that piece of information as well. this is related to everything going on elsewhere in the news including isis. >> it clearly has an impact. >> a market down 111 points. it is a selloff but it could be much worse. what is the reaction down there?

>> as you know, it really could be so much worse. we are really hovering around those session lows. we were down 120 points. it shows you we are hovering near those lows of the day. the u.s. dollar. the dollar index to the highest point in a week. that is the sentiment on wall street. that is where we stand. in the meantime, what did this mean ultimately. it just brings back that wildcard of terrorism. nobody likes uncertainty. it comes on the heels that the soldiers that were run over on monday, there was that incident that two soldiers were ran over"

back. as you just noted, isis chatter pertaining to canada over the last five days. that really brings that uncertainty and the worry, the six, the fear index. it has been under three days in a row. it has now been up nine, 10%. melissa: nicole, thank you very much. let's jump back and listen. >> we will not comment on that. [inaudible] >> over there, please. go ahead.

>> no. that would be a conclusion. >> basically, it is our responsibility to protect the public. if we would have known that this was coming, we would have been able to disrupt it. >> sir. >> no. not at this time. what is a normal level? we have been operating for the past number of years.

that is a level we are operating at right now. >> that is too soon to be able to comment on that. i look at all the information that we have. [inaudible] >> what kind of plans do you have in place? >> basically what we are doing right now in order to evacuate a building, there is a part that exists. that is what we trained for. sir, behind the camera please. go ahead.

we have set up a perimeter. there is an ongoing operation to clear to make sure that it is safe for everybody. do you have a target in mind? was it your impression or did he have a target in mind?

>> again. that is way too early to determine a motive. >> last question, sir. >> thank you very much. melissa: when we come back, we will have more on the shootings in canada. when we come back, we have chris from the institute for the study of war. between this and what is going on in the middle east. we will talk about it. don't go away. ♪ go ahead and put your bag right here.

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>> falling into isis control. the institute for the study of war. we have a lot to talk about today. i want to start with ottawa. >> i spent a lot of time training and operating with the canadians. my gratitude is to continue to support america in becoming a loyal ally. even though we do not know the identity of the shooter yet, they are a lone wolf shooter scenario. these were guys that were not command direct did by a terrorist organization. these were simply to individuals

they got some level of education. they conducted a lone shooter won't wolf attack. what happened today looks like it was done by design. i just do not think it was coincidence. it looks too much like design. again, i do not know who the shooter was. i do not know. >> i want to make sure that i am understanding you properly. soldiers of islamic states who are everywhere around the globe declared war on coalition countries. this is a twitter comment. a note isis follower saying something like that. it could be a lone wolf that was radicalized or inspired.

>> those forces right now are minimal concern to you. the real problem we face is twofold. they are bringing in western europeans into the islamic state here they are training. they are proliferating them back out into the western world. those are the people that are really concerned. they will be homegrown terrorists that will be radicalized through the interactions. that is the scenario that the fbi will have its hands full with. we have seen several sympathizers. people who are on their way to syria.

this is a real problem that our federal and local law enforcement will have to deal with. the ideology itself has had a unfortunate amou attraction. that is a very difficult scenario to counter act. in the last hour, the canadians do not necessarily anticipate this kind of activity within their borders. >> i agree with that. canada is not the target. the extent that isis can hit the united states, they will come after us. that is how they will try to peel off the support. that is what happened in spain. that is what happened in london. all coalitions ultimately are

fragile. they have to be maintained. the canadians have been loyal allies. won world war ii all the way to the cold war. i am very grateful to our canadian allies. when i go into combat, they are trained to a level that i feel comfortable trusting with my life. i feel comfortable supporting their operations and vice versa. melissa: let me take you over to the drops of ammunition that we have had. twenty-seven made it to the folks that it was supposed to go to. it looks like we are looking at that right now.

with the ammunition that were dropped, they have since backed dropped. how likely is it to happen? i would say this level of wastage is inevitable. it is relatively small. they are taking stock piles of american weapons. maybe they are taking airdrops. to isis, it is really a propaganda campaign. if we had the military capability, that way you know

that all the supplies are going to get exactly where they are going to need to go. some of those airdrops are going to go up. i would see a record of 27. it is a pretty admirable record. melissa: we always appreciate you coming on the show. >> my pleasure. thank you. melissa: we are heading into the last hour of trading. we know that the market right now is down 102. liz: slightly off the lows of the session. violence in canada. right now, we are all down. before this shooting began, the markets were higher. none of that has held at all.

coming up, we will be following every step of the breaking developments of what happened. it is in the province of ontario. the capital of canada. the canadian government. attack in the canadian parliament. mike baker will be joining us. oddly enough, we are looking at gold right now. it continues to hold its grip on what is going on with commodities. of course, the tragedy itself. we will see you at the top of the hour.

>> we will have more headlines. we will see about the situation there with what he thinks about the lone wolf attack. you can never have too much money. we will be right back. ♪

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melissa: we are still following the fatal shooting in ottawa. thank you so much for joining us. give us your reaction. >> i think that there is still a long way to go. possibly three different shooters. maybe one shooter. i think in cases like this, much like the boston marathon. it takes a while for the whole story to roll out.

another network, i have already heard people saying this was definitely an al qaeda operation. i think it is linked to classify it as an operation belonging to either one of those groups. he is motivated on the web. he decides on his own to go out and do something without any guidance or direction from anyone overseas. melissa: it really means that it could happen anywhere. somebody who was inspired by the chatter online, on the web about canada joining the coalition. this is just a lone person that did this. is that harder to stop? >> your point is absolutely great. it could just as easily be happening in the united states.

the necessity of law enforcement, particularly, the nsa to watch websites. any american has spent a lot of time there ought to be somebody that the law enforcement is aware of. i do not think that the law enforcement will let that happen. melissa: i am sorry. i did not mean to cut you off. thank you so much. we really appreciate your time. what does that tell you? >> i agree in some ways. maybe not as scary because if it is not a network, maybe the attack is less gleeful. maybe not as bad as we initially thought. we had have this incident in

québec with a soldier. one killed. another injured you'd calling it a terrorist attack. another hit and run. we are still speculating. melissa: we are watching the situation in canada. neil cavuto is hosting a special report tonight. he will be covering every detail of this situation. you do not want to miss it. this year's midterm set to be the costliest ever. more money and answers coming up. ♪

>> we have a former deputy adviser to president george w. bush. gentlemen, thank you for joining us. jonathan, start with you, the market is down 91.

not bad considering what's going on. >> you're right melissa. about 20 points off the low of the day. because of the uncertainty in what is still not only just a tragic but still unfolding situation in canada and perhaps worldwide, the big risk for the markets is in the last hour we see accelerated sell-off. the stock market ended on the lows, given the news, we could see that today. >> brad, given your experience, what's your reaction what happened today? >> this is an awful event. canadians are family to us, when they're hurting, we're hurting. we need to let time for the authorities to get to the bottom of it. i was in the white house on 9/11. i can tell you from my office in the west wing, i went into the situation room after the attacks thinking they would have the answers and they don't because there's a lag in what we know, and what is happening. we have to be patient, and we can't put the cart before the horse and try and read into

these events because, as we know, events are changing rapidly. but the good news would be if this was a lone wolf event as the guest previously said, that would be good news. >> thanks to both of you. hand it over to liz claman. "countdown" starts right now. liz: melissa, the situation is fluid, as the heart of the canadian government comes under attack, we begin with breaking news. as we speak, fbi offices are raising alert posture after the two fatal shootings in ottawa, ontario, the capital of canada. shortly before 10:00 a.m. two, gunmen jumped out of a toyota corolla. the license plates removed from the car, they began shooting. one of them did, at the national war memorial, near parliament hill as you can see, and a soldier guarding the memorial was shot and killed. they headed to parliament mayhem.